Incentive on tracker loan problem to be saluted
MORTGAGE lender Permanent TSB is to be congratulated for coming up with an ingenious attempt to deal with the problem of tracker mortgages.
It is primarily a problem for the banks, so they can expect little sympathy. Such was the madness of the bubble years that some customers have trackers charging only three-quarters of a percentage point over ECB rates. The bank has to regularly repay and replace the money which paid for the mortgage, which now costs them several percentage points over the ECB rate.
But, rightly or wrongly, bank losses are now our losses. If the cost to them of cheap trackers can be reduced, so much the better.